I'm starting a software business with a friend. What are some good questions to ask when evaluating lawyers?

That's great that you are being proactive and planning ahead--a great client in the making! You'd want to know their experience in setting up closely held entities. Also, some may charge flat rates while others may charge hourly. Their are pros and cons for both. You'd also want to evaluate your own goals and whether you want an attorney just for the formation of the entity or to also continue advising the business with its ongoing needs. If the latter, you'd want to find out about the attorney's experience with a variety of issues such as contracts, employment, leases, licensing, intellectual property...it all depends on the nature of the business and its goals (software business is a bit vague). Several of us in our small firm regularly represent businesses in the capacities I've described if you have further questions. Good luck!

You should never be afraid to ask about costs. Sometimes, particularly if litigation is involved, it is impossible to give a firm quote as to what your costs are going to be. Also, if you forget to tell your attorney all the details, or if surprises otherwise come up, costs are going to be more than anticipated. But many attorneys will charge flat fees or at least will offer a ballpark estimate for transactional work. For litigation, many can give you a rough idea of what each stage or possible event will cost so that you can determine whether you should go forward or not.

You might also ask the attorney whether the focus of his or her practice meshes with what you are trying to do. Make sure the attorney is clear about what it is you are trying to do and be sure to bring any paperwork with you to the meeting.

A little suggestion, too. Attorneys have nothing to sell but their time. (We are not allowed to mark up court fees, process server costs and the like. We have to earn enough to pay staff, pay the rent, pay the utilities and taxes, and take home a little something, from sale of our time alone.) Some attorneys therefore charge for the initial consultation. I don't, but I understand those who do. Time we spend having our tires kicked is all part of the business of law, but we really appreciate it when people avoid doing this unnecessarily. And really, you are also a busy person (I know you must be if you are in the startup phase of a business), so do your homework ahead of time. Ask trusted friends or other attorneys for referrals. (For example, if the attorney who prepared your will does not do business formation, he or she probably knows someone who does.) Check out prospective attorneys on line (Avvo can be a good tool among many, so long as you are also aware that the attorney manages the profile you find here), then narrow the list of prospects to just a handful (I suggest no more than three.) If you are meeting with a prospective attorney and you sense that you are definitely NOT going to retain him or her, politely thank the attorney and end the interview. You are not doing either of you any favors by staying another 20 minutes "to be polite".

Hope that helps.

This is the best question I've answered. More prospective clients should be interested in finding an attorney that is a great fit for them and their legal issues. My answer could go on and on, but I'll keep it brief.

There are three categories of questions that you can ask to determine if there's a fit: 1) Experience, 2) Practice, 3) Fees. You want the answers to these questions to be specific and verifiable so you can find an attorney that you can relate to and trust long-term with your business and personal legal issues.

Experience.
Ask questions like:
Have you ever owned a business before?
If so, was that business similar to the one we're forming?
What do you know about the industry we're involved in?
How have other similar businesses done this in recent months?
What professional associations do you belong to?
What continuing legal education do you focus on?
What experiences do the other attorneys in your practice have that will benefit me?
How many companies have you formed?
Have you litigated business issues?
What was the outcome of the litigation?

Of note, years of practice for each attorney is somewhat important, but total years of practice combined is not. Total years experience in entrepreneurial business is more important by far.

Your questions should help you determine that you're in the hands of an attorney that can speak your language. If the attorney has NO experience with owning a business, you may not have a good fit. You want an entrepreneur in your corner so you can relate and that can add to the momentum of building your business.

Practice.
Ask questions like:
What's your practice philosophy/mission/values?
Tell me about the members of your firm?
How will their qualifications benefit me?
Is the practice stable?
How can I be sure the practice will be in business as long as i will?
Do you have business clients that I can talk with for references?
What networking/marketing do you do person-to-person?

Your questions should help you determine that the practice is a good fit for your philosophy/mission/values, and will be available to you long term as you build your business and your ties to your attorney.

Fees.
Ask questions like:
Do you involve your clients in structuring how they pay for your services?
What options for structuring payment do you have experience with?
How can I give feedback on performance if I feel I'm getting great value for my money?
How can I give feedback on performance if I feel I'm NOT getting good value for my money?

Your questions should help you determine that the attorney/practice is client-focussed beyond just saying so. If there are options and enthusiasm, you've probably got a good fit. If there are few options other than billable hours, and few options for method of payment, you probably don't have a good fit.

Congratulations.
You are already on the right path to finding a great attorney just by asking what questions you can use to evaluate attorneys. The time you invest in selecting a great attorney will pay off long term for your business and for you.

Good luck, Mark Arend.

As a software company you will want to make sure that the attorney has experience with intellectual property licensing, which is an important consideration even at the time of formation. Often partners to a new venture will bring existing code/products to the new business entity. You will also want to address contingencies such as the IP rights for the respective parties should the new venture dissolve.

Because IP licensing attorneys might not also be experts in corporate law, you might want to consider a law firm with specialist attorneys in each of these areas.